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 Might as well take advice from this guy |
“Dear Jim: Should I be worried about Bear Stearns in terms of liquidity and get my money out of there? –Peter
Cramer says: “No! No! No! Bear Stearns is not in trouble. If anything, they’re more likely to be taken over. Don’t move your money from Bear.”
On Jan. 17, 2007, Bear was trading at its high of $171.51 a share. Since then, it has been racked by the mortgage turmoil. On March 11, when Cramer posted the e-mail and his response, the stock closed at $62.97. As of 10:00 a.m. on March 17, the stock was trading at $3.72 a share.
Oh well, we can all be wrong from time to time.
Not that anyone cares, but the word is “wracked”.
And have permabulls like Cramer ever said anything except “give us more money”?
I care about words, and “racked” might be appropriate here as a metaphor…if the company was tied hands and feet to a rack, then pulled in both directions, which is what “racked” means.
He was half right.
“No! No! No! Bear Stearns is not in trouble. If anything, they’re more likely to be taken over. Don’t move your money from Bear.”
They did get taken over. They also would not have been in trouble if other people would have listen to Cramer. But instead you got a run on the Bank effect with everyone pulling their money out and not just selling their Stock. Which basically doomed them.
#3–Jetfire==I don’t follow the markets, just not my thing. My impression was that Bear Sterms was heavily into the high risk home mortgage market which because of lack of oversight has gone into the tank. If thats not the case, why did people take a run at Bear Sterns==ie, what was the cause of people to lose fiath in this institution?
Anyone who is not prepaired to lose everything in the stock market should not be investing in it! The stock market is a game of chance,how soon we forget about the previous corrections and failures.You would think that if a stock loses over half its value you would consider getting out? Would’nt you?
I bought some Rite-Aid stock after watching Cramer. It has dropped significantly since. Now I don’t really blame Cramer, I bought the stock.
The problem is every time I mention a stock my wife says “How’s your Rite-Aid doing?”
In these times you might as well take it to Vegas and play black jack. This is a unprecedented situation in US economics. It’s hard to make a call about something you’ve never seen before.
In all seriousness, I wonder if Peter is still with us. That’s potentially a lot of money to have seen vanish over night.
#4 You’re correct they were in the tank because of heavy sub-prime losses but the could have recovered. But when people started to pull their money out (Hard Cash) that was it. They had nothing left to work off of. They still have good divisions and that’s what JPMorgan Chase is buying really and selling off the bad.
#5 Is correct. The unfortunate thing is the Stock Market subject to over reaction the good and the bad. Thats what led to the Sub prime mess (the good) and is also making it worst (the bad) than it needs to be.
I’m for these banks going under for making these bad investments. As for the shareholders losing their Money. Well, they probably never asked anything when the stock was climbing except how high.
As for the guy who asked Cramer for advise we it was just that advise, which can be wrong.
BTW I told my brother law to buy Google instead of Yahoo. He bought Yahoo. I think he finally sold it.
I guess Cramer’s dartboard was missing that day.
While the stockholders lost 98% of their investment (would have been 100% except the taxpayer bailed it out for $30 billion — good old free markets) the CEO still gets to keep his 8 digit salary.
These guys make Communism look good.
Crammer was just on Hard Ball. He says the question about staying with Bear Sterns was a bank saving account type person. Crammer confirms the money “on deposit” with Bear Sterns was and is still safe and no run on the bank was warranted.
Every month has another story about stock market fraud and high management incompetency. The market is about as much about small fish being manipulated as anything else. Still, what can a small fish do?
Jimmy Boy Cramer is a good Democrat. Typical New York Democrat, like his good friend Spitzer.
You did know that Mr. Booyah is a proud Democrat, right? I only bring this fact up for the ‘tards who stink up John’s blog with their politics.
Sitting over at Marketwatch listening to the losers who keep saying, “Cramer told me to do it” has me wondering if people should be required a license to buy and trade stock, or at least a certificate from an accredited financial school that verifies that “I’m not one of the suckers born every minute.”
Cramer has never really talked to the masses, just the masses of multi-millionaires who can afford losing positions with Bear Stearns.
This happened because the Fed hasn’t changed with the times. Bear Stearns isn’t a bank, so the Fed couldn’t give them a loan like they gave the company that bought Bear Stearns.
#13, you’re kind of unclear on the concept of a stock market, eh? Without the suckers, the casino would close.
I’m sure Cramer was talking to his wall street connections and they did all think that things were OK on Tuesday.
Carlile was hit with a 500 million margin call on Wed. They had to sell 16 Billion in Poison Mortgage backed paper that no one needed. BSC had 15 percent of that. That was the straw that broke the bank.
But it was all good news for me. I shorted BSC Monday at 64. I covered at 29 friday morning.
For all you wanabe traders. Here is a tip.
Sell on the rumer of bad news as soon as you here it. Because thats what the pros do.
This just goes to show you no matter who the Guru is. He is never always right. No one is that good.Even Tiger can shank one into the woods. But not that often.